State Extends Filing and Payment Deadlines for Sales Tax and Room Occupancy Tax

March 30, 2020

At the direction of Governor Ned Lamont, and in recognition of the impact of COVID-19, the Department of Revenue Services (DRS) is providing immediate administrative tax relief to Connecticut small businesses. DRS is granting an automatic extension of filing and payment deadlines for Sales Tax and Room Occupancy Tax.

“The state needs to be taking all steps possible to provide relief to our small businesses,” said Governor Lamont. “This is a prudent step during this public health emergency, and I want to thank legislative leaders for their support with this effort as we work together to support our job creators during this unprecedented public health crisis.”

What small business taxpayers qualify for this relief?

Taxpayers that have $150,000 or less in annual Sales Tax liability qualify for an automatic extension of time to file and pay. Similarly, taxpayers that have $150,000 or less in annual Room Occupancy Tax also qualify for this relief. A taxpayer that collects both Sales Tax and Room Occupancy Tax must evaluate each tax separately to determine eligibility for relief.

How does a taxpayer determine if it is a qualified small business?

Taxpayers are required to utilize a calendar year look back period of January 1, 2019, through December 31, 2019. Any taxpayer that reported $150,000 or less in tax during that period qualifies for the relief.

What returns are covered by this extension?

For monthly Sales Tax and Room Occupancy Tax filers: returns and payments due March 31, 2020, and April 30, 2020, are extended to May 31, 2020.

For quarterly Sales Tax and Room Occupancy Tax filers: returns and payments due April 30, 2020, are extended to May, 31, 2020.

“DRS acknowledges that small businesses may need additional time to access their records and consult with their tax preparer,” said Acting Revenue Services Commissioner John Biello. “Taxpayers who file and pay on or before the extended deadlines will not be subject to any penalties or interest.”